Goodbye 2011 (good riddance)

While it would be nice to end the business year on a high note, it is not to be.

Business activity levels in Irish companies weakened slightly and employment fell further in the final three months of the year with the economy showing no signs of momentum, according to the latest KBC Bank Ireland/Chartered Accountants Ireland Business Sentiment Survey.

“The survey suggests Irish business conditions remain difficult as 2011 draws to a close,” said Mr John Hannaway, president, Chartered Accountants Ireland on its release. “A weaker global recovery and ongoing domestic budget austerity are restraining the spending and hiring plans of business. As a result, companies report their activity levels fell for a second successive quarter in late 2011 and they see only a marginal improvement in early 2012.”

Austin Hughes, chief economist, KBC Bank Ireland who prepared the survey noted that while companies report a slightly poorer outlook for their own businesses, they have become altogether more nervous about the outlook for the Irish economy as a whole. “This largely reflects the ongoing Euro crisis which is regarded as the key issue for 2012. The continuing inability of European policymakers to deliver a workable solution seems to be unnerving Irish business. Unfortunately, such concerns put spending and hiring plans for 2012 in jeopardy.”